Knowing how to add activities to your trade licence is key if you’re a business owner in the UAE looking to expand your services or product offerings. The UAE’s dynamic market offers plenty of opportunities for growth, so it’s essential to ensure your trade licence keeps up with your evolving business model.
This process involves strategically choosing from the predefined list of activities while sticking to the regulatory framework of the UAE’s licensing authorities. With the right guidance, you can manage the addition of activities to your trade licence efficiently, making sure your enterprise stays compliant. At the same time, you tap into new market segments.
Whether you’re an experienced entrepreneur or just starting out, figuring out how to update your licence is a key step towards the seamless expansion of your business operations in the UAE.
Preparing to Add Activities to Your Licence
Reviewing Your Current Trade Licence
Before you update your trade licence, it’s essential to review your current one. This document is your formal permission to operate within the UAE, and you must adhere to the nation’s stringent regulations. To verify the status of your trade licence, the ‘Business Verification’ tool provided by the Dubai Economic Department (DED) is accessible online. This digital service allows you to search and confirm the details of any company registered in Dubai.
To use this service, navigate to the DED website and locate the ‘Search Licence Information‘ feature. You will need to input specific details such as the trade licence number or company information. After submitting this information, the system will present the status of your trade licence, including its validity, renewal requirements, and any outstanding actions or fees that may need to be addressed.
Identifying Needed Activities for Business Expansion
As your enterprise evolves, you may need to diversify or enhance your offerings. This could involve adding new products, introducing additional services, or adapting to market demand shifts. For instance, a clothing retailer might decide to offer accessories, or a marketing consultant could expand into web development services. Updating your trade licence to encompass these new activities is essential for maintaining regulatory compliance and fostering trust with clients, thereby avoiding legal issues.
Consulting with Legal and Business Advisors Like Virtuzone
Navigating the intricacies of modifying a trade licence in the UAE can be daunting, with numerous legalities and paperwork involved. Engaging with professional business setup service providers, such as us here at Virtuzone, can simplify the process. We can manage the required documentation and ensure that all compliance requirements are fulfilled. Our expertise helps in ensuring the smooth addition of new activities to your licence.
The Application Process
The initial step is to obtain approval from the DED, which regulates business activities in Dubai.
Following approval, you must submit a formal application, often using the BR1 form, to request changes to your trade licence. Depending on the nature of the new activities, a No Objection Certificate (NOC) from concerned authorities may be required. For example, activities related to food handling would necessitate an NOC from the Dubai Municipality.
Additional legal steps are required for Limited Liability Companies (LLCs), such as amending the LLC Agreement. This addendum must be legally translated and notarised at the DED. A Court Agreement must also be completed at the notary’s office. After compiling all necessary documents, including NOCs and notarised agreements, you will submit them along with the processing fee to the DED.
Once the DED has processed your application and received the fee, it will issue an updated trade licence reflecting the new activities. With this, your business is authorised to operate within its expanded scope.
Documentation Requirements
To update your trade licence with new activities, you must gather a quite a bit of paperwork. This includes passport and visa photocopies, a NOC from your sponsor if necessary, and the original trade licence and registration certificate. A completed application form for licence and registration is also required.
Documentation must also encompass a lease contract for your company’s office space and an initial approval certificate for your company name from the UAE’s Registry Office. For certain company structures, a resolution from the parent company’s board to add activities to the trade licence is needed.
Moreover, you must obtain permission from the DED and, if applicable, an attested amendment to the LLC Agreement. An updated MoA that includes the new activities is also a prerequisite for your application.
Online vs. Offline Application Procedures
The DED offers online platforms to facilitate amending your trade licence. The process and requirements for adding activities can vary depending on factors such as your business’s location and the specific nature of the business activity.
For instance, Jafza customers can utilise the Jafza portal to request changes to their licence by selecting the appropriate options under the “Licence” section.
Fees and Timelines
The cost of adding activities to your trade licence includes government charges, processing fees, and other related costs. The jurisdiction influences the total expense, the type of activity, and the licence category.
Amendments made during the licence’s validity period will incur the full licence fee. Concurrent amendments during licence renewal will attract an additional $135 (AED 500) fee. The processing time for amendments typically spans around three working days.
The overall waiting period from submission to final approval can range from 3 days to 4 weeks, depending on the approvals and business activities involved. It is important to account for these timeframes to ensure a seamless update to your trade licences.
Trade Licence Activities in the UAE
What Are Licence Activities?
In the United Arab Emirates, a trade licence is mandatory for businesses. It specifies the nature of your business operations. Licence activities define the scope of a company’s operations, detailing its services or products and, by extension, its target market. For example, your business could be licensed for activities such as wholesale trade, retail trade, or a specific service.
The UAE authorities require businesses to select their activities from a pre-established list. This list is organised into broader categories known as business activity groups. These groups make it easier for entrepreneurs to identify and select activities that align with their company’s goals, streamlining the business setup process.
Types of Permitted Activities
The UAE categorises business activities into several main groups, including industrial, commercial, professional, and tourism. Each of these main categories is further broken down into subcategories, allowing you to choose activities that closely match your operations.
A single business licence can cover multiple activities, subject to the licensing authority’s regulations and the licence type. While being specific in activity selection can instil confidence in business partners, such as banks, it’s possible to include activities from different subgroups on one licence, depending on the licence type and the authority’s specific rules.
However, combining activities from different main groups on the same licence is generally not allowed. For instance, an industrial and a professional activity wouldn’t be issued under a single trade licence. Adding activities to a licence can lead to increased costs, which vary depending on the nature of the activities and the fee structure of the licensing authority. Typically, up to three activities are included in the base cost of the licence, with each additional activity incurring an extra charge. This fee is around $205 (AED 750) per activity on the mainland, though this can vary across different free zones.
Regulatory authorities require the classification of business activities as it helps them identify and categorise businesses. This, in turn, determines the licences, approvals, permits, and regulations that apply to a business. Some activities may come with additional licensing conditions, such as the need for permits from specific authorities or compliance with industry-specific regulations.
You’ll need to research and comply with all relevant conditions to ensure your business operates without legal complications. Occasionally, certain activities may require a UAE national sponsor, a minimum capital requirement, or a reference letter from a bank.
Final Thoughts on Licence Activity Expansion
Expanding the scope of your trade licence to include new activities is an exciting step towards business growth in the UAE. It’s imperative to contemplate this move carefully, align it with your strategic objectives, and ensure compliance with local regulations. With the right preparation, the application process can be straightforward, particularly with expert guidance from seasoned advisors.
Armed with the updated licence, you can confidently enter new market segments, armed with official approval and a sense of renewed potential. As the business landscape evolves, so must your enterprise— it must remain adaptable, proactive, and compliant. The UAE’s dynamic markets will be well within your grasp.
Do you need assistance in securing a trade licence in the UAE? Would you like expert advice on knowing which activities to add to your business licence in Dubai? Get in touch with our team now to learn more.
